Renewable energy assets in India: a project finance perspective
Large developers in the renewable energy sector have enough options to boost returns even as challenges mount and will fight aggressively in the various auctions scheduled in 2022, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). Falling costs of solar modules, which in turn brought down tariffs, fuelled the growth of India’s renewable energy sector. However, turmoil in global supply chains caused by the COVID-19 pandemic and the Russia-Ukraine war have pushed up costs. Further, renewable energy developers face higher financing costs as surging inflation has forced central banks to tighten monetary policy, pushing up interest rates.